Dynamic revenues nearly cut in halfDynamic Healthcare Technologies blamed slow market reaction to new product introductions and continued delays in sales cycles for a disappointing first quarter. Revenues declined during the period by 44%.For
Dynamic Healthcare Technologies blamed slow market reaction to new product introductions and continued delays in sales cycles for a disappointing first quarter. Revenues declined during the period by 44%.
For the quarter (end-March), revenues were $6 million, compared with $10.7 million reported in the 1997 first quarter. The Maitland, FL-based company had a net loss of $2.9 million, compared with net income of $3 million in the same period last year.
Dynamic is experiencing prolonged sales cycles and contract closings, a trend the company believes is temporary. In addition, the company was hurt by a time lag between implementation of its new technology at initial sites and the ability of those sites to demonstrate the value of the technology, according to the company.
In any event, Dynamic is in the midst of a corporate streamlining and functional reorganization plan, which the company expects will result in a number of benefits such as more cost-effective operations and consistent delivery of products and solutions. The plan, which has a cost-reduction target of 20%, will continue through the second quarter.
In other company news, Dynamic has signed a loan commitment from a commercial bank for a $5 million revolving line of credit and a $200,000 guidance line of credit. The lender's obligation to close on the two lines of credit is conditioned upon conducting a satisfactory pre-closing audit and a company infusion of cash equity of $2.8 million on terms satisfactory to the lender.